Forex Market Commentary for December 11, 2007 by Cornelius LucaGFT Daily Market Commentary
The dollar slipped versus the euro and the pound but made little progress versus the pound and the yen on Monday, as the market consolidated before the expected Fed rate 25-basis point cut today. Only a 50-bp cut would likely hurt the dollar. Otherwise, choppy trading should rule.
Euro/dollar
The euro/dollar rallied on Monday but should now consolidate ahead of the FOMC meeting. Choppy trading is likely until then.
Immediate resistance is still seen at 1.4750. Above it, strong resistance is seen at 1.4805 and 1.4775.
Initial support comes at 1.4670. The next level is 1.4585. A break below 1.4530 would suggest a test of 1.4445.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Dollar/yen
Dollar/yen edged up to a one-month, but the immediate outlook remains mixed. Key level is at 111.60 from a 50-point pivot that targets 112.10 and 111.10.
Immediate resistance remains at 112.10. The next level is 112.85.
Initial support comes at 111.25. Below 110.60 there is support at 110.35 from a 50-point pivot that targets 109.85 and 110.85111.00.109.30.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar rallied on Monday following the UK inflation report. It should now consolidate ahead of the Fed report.
Immediate resistance is still seen at 2.0505. The next level is at 2.0585. Distant resistance comes at 2.0833.
Initial support is now seen at 2.0430. Below 2.0340, there is distant support at 2.0183.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss closed virtually unchanged on Monday as well. Consolidative trading is likely today as well.
Initial resistance is still in place at 1.1350. Above 1.1400, there is resistance at 1.1525.
Immediate supports are at 1.1265 and 1.1230. The next level is 1.1110. Below 1.1060, support is pegged at 1.1025.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish